AS A Level Business: Public Sector Businesses

• As said in the introduction to business sectors
• All business can generally be classified as either belonging to the public sector or private sector
• A sector is simply a group of businesses that share certain common traits
• The term public sector is used to refer to businesses that are owned by the government on behalf of the wider public
• The term government here is meant to refer to
  • The national government as is common in most countries such as Zimbabwe
  • Regional, provincial and state governments as those that fall under a governorship or a state as in the United States, China or South Africa
  • Federal governments such as in the United States
  • Rural or Urban authorities such as municipalities
  • Similar local government authorities
• The government manages the business which is normally called an organisation on behalf of the people of the geographical area
• Typically such organisations are meant to primarily provide a service rather than make a profit
• However, it is not uncommon for public sector businesses to be operated on a commercial business so as to lighten the tax burden and reliance upon public funding
• Sometimes public organisations are meant to provide a strategic resource which would be impossible to provide any other way
• For example defence forces and police services
• At other times goods and services that are too significant and important are provided by the public sector as well
• For example roads, education, electricity, transport, law and order, healthcare, energy and telecommunications
• It is important to note that in some cases private sector businesses are in some countries and areas allowed to provide these services alongside/instead of the government but in such cases their activities are heavily regulated for the greater good
• In Zimbabwe examples of public sector organisations include:
  • ZESA and its entities which provide electricity
  • ZUPCO which provides subsidised transport to the wider public
  • National Railways of Zimbabwe which provides rail and freight services
  • ZBC (Zimbabwe Broadcasting Corporation) which provides broadcasting services
  • Grain Marketing Board (GMB) which manages the country’s grain reserves
• In some countries, public entities are controlled and run by a Minister (Cabinet Member) who is appointed by the president/Prime Minister
• The Minister is regularly required to report the operations of the organisation in parliament which crafts general strategic direction of the organisation
• Public sector businesses are financed by grants, tax proceeds, rates and other similar public sources of finance

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